Sen. Levin: JPM Copper Fund Risks ‘Bubble and Burst’ Trading

By Brendan Conway

The Michigan Democrat’s SEC comment letter dated July 16 warns regulators that the proposed JPM FX Physical Copper Trust could create a “bubble and burst cycle” in the metal. The senator contends that the fund “is unlike any other metal ETF currently listed on the NYSE” and “would allow speculators to create a squeeze on the market.” He further argues that the ETF “will disrupt the market supply of copper by removing from the market a substantial percentage of the copper available for immediate delivery.”

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